Playboy Lost $4.9M on Ethereum It Accepted as NFT Payments

NFT

PLBY Group (PLBY), the father or mother firm of Hugh Hefner’s Playboy, mentioned it took an impairment lack of $4.9 million on the Ethereum it held final yr, as crypto winter noticed a big decline within the broader market costs.

The approach to life and media firm mentioned that it accepted Ethereum as funds for its “Rabbitars” non-fungible tokens (NFTs) launched in 2021, which it holds in its stability sheet as digital belongings, based on an annual submitting on Thursday. The worth of the digital belongings sits at $327,000 as of final yr, the submitting mentioned.

A earlier submitting reveals that the corporate’s digital belongings had been value $1.75 million as of Sept. 30 of final yr.

The corporate defined that the corporate accounts for its digital belongings as “indefinite-lived intangible belongings,” that are topic to impairment losses if the honest worth of the belongings fall beneath their carrying worth, at any time. The impairment losses that the corporate takes on the digital belongings can’t be recovered, even when the honest worth of the belongings rise after taking the impairment losses.

“The market value of 1 Ethereum in our principal market ranged from $964 – $3,813 throughout the yr ended December 31, 2022, however the carrying worth of every Ethereum we held on the finish of the reporting interval displays the bottom value of 1 Ethereum quoted on the lively trade at any time since its receipt,” based on the submitting. “Due to this fact, unfavourable swings available in the market value of Ethereum may have a fabric affect on the corporate’s earnings and carrying worth, whereas solely time an increase in costs will affect the corporate’s earnings positively, is when the Ethereum held within the stability sheet, are offered at a achieve,” the submitting mentioned.

The corporate launched its “Rabbitar” NFT mission in October 2021, throughout the peak of the crypto market. Ether, the native token of Ethereum, misplaced about 60% in worth since October of 2021, based on TradingView knowledge.

Earlier in 2021, Playboy entered into NFT and blockchain expertise business with its NFT drop referred to as “Liquid Summer time,” which is a set of digital artworks created in collaboration with the artist Slimesunday. The gathering which minted in Might, 2021 options archival images of Playboy mannequin Lenna Sjööblom – the so-called “First Girl of the Web.”

Nonetheless, these NFT drops weren’t the primary foray for the corporate into the world of digital belongings. In 2018, Playboy TV started accepting bitcoin funds. In June, bitcoin funds expanded to Playboy.com.